Navigating Home Sales with a Temporary Restraining Order in Place

Aloha. The listing and sale of a marital home while a Temporary Restraining Order (TRO) is in place against one of the sellers and in favor of the other creates some significant challenges. From a real estate perspective, here are the primary challenges we face and how your guidance on the front end can be invaluable:

• Property Access & Preparation.

This is usually the first hurdle. Properties sell better when clear of clutter, staged and beautifully photographed. If a party is barred from entering the property to retrieve or dispose of belongings, we’ve got a problem. Cleaning, staging, and photography should be done after the property has been de cluttered. Otherwise, the property’s marketability can suffer significantly. How You Can Help: A court order or a stipulated agreement that provides a workable schedule for retrieval of the barred party’s belongings, and authorization to the occupant to dispose of/store offsite any such belongings remaining after the deadline, allows us to move forward in a timely manner.

• Decision-Making Authority.

From pricing to accepting an offer to negotiating credits, a home sale requires timely decisions. In high conflict divorces, it’s common for at least one of the sellers to be uncooperative. How You Can Help: The TRO may not be the right place to address these concerns, but a stipulation or order that preauthorizes certain decisions can be very helpful. For example, “The husband will have authority to execute contracts for repairs less than $5,000.” Or one party can be named as attorney in fact to execute documents for the other party within specified parameters. Alternatively, establishing a clear, expedited process for decision-making via counsel can keep the transaction on track.

• Showings and Safety

Safety is paramount. Conducting showings when there is potential for conflict or a violation of the TRO is a serious concern. We do our best to ensure the restricted party does not violate the terms of the TRO. If a restricted party requests access, our response will be to refer them to counsel. However, we will not necessarily know if an agent requests a showing for the restricted party. We can request the clients’ names before granting showings, but we can’t prevent a restricted party from using an alias. If the party is determined enough, they will find a way to gain access. How You Can Help: All occupants should vacate the property during showings. This provision is included in the listing agreement, but your assistance in reinforcing the importance of compliance would be most welcome.

• Conclusion.

My goal is to assist the parties in complying with court orders and maximize the net proceeds from the sale. When you are negotiating terms related to the marital home, consider involving me or another CDRE early in the process. A brief consultation can help craft practical, market-informed terms that facilitate a smooth sale. Mahalo, Judy S. Howard, Esq., R(B), CDRE® (808)885-5588 cdrehawaii@gmail.com Compass